Risk Bureau undertakes to provide client′s related information that aims to help lending institutions operating in the U.A.E. to formulate, as accurate as possible, a profile about applicants, application for loan or seeking any sort of banking services. This information is provided through the following systems:-

1. Corporate Credit System

Financial Institutions, subject to the provision of the Risk Bureau regulations, furnish the Risk Bureau with data showing identity of their customers and submit statements on the credit position of each of their customers when used credit facilities extended reach or exceed AED 250,000 or the equivalent. Financial Institutions submit their data periodically as at the end of March, June, September and December of each year. Risk Bureau provides each Financial Institution with information on consolidated credit position of its reported customers as soon as the data are compiled. Risk Bureau also furnishes to Financial Institutions, upon special request, a statement containing the consolidated credit extended by all Financial Institutions to this customer who applies for facilities to the financial institution. This existing system will be replaced with a new proposed on-line system within the next few months. This new system will allow the Financial Institutions to report their customers details electronically, and enable them to obtain up-to-date consolidated information at any time.

2. Returned Unpaid Cheques System



In order to reduce the number of returned unpaid cheques, to ensure better discipline among bank customers and to enhance the standing of the cheque as a payment instrument in the country, Central Bank had decided in June 1993 the following :-

Current Account holders whom at least 4 cheques get returned unpaid due to insufficient funds, with a maximum time span between the first cheque and the fourth cheque of one year, their current accounts must be closed, remaining cheques collected and the name reported to the Risk Bureau along with the amounts of each returned cheque. This information is used to complete a list of "Current Account Restricted Persons", which is available to all participating banks electronically.



3. Customer Rating System

On 15 October 1998 a RB Customer Rating System was established to provide rating for banks customers, both Resident / Non Resident in the U. A. E. based on the data fed on line by the bankers. The Central Bank RB Customer Rating System compiles the information and makes it available for all banks.

This system allows any bank to check on line instantly before giving loans to a particular borrower, whether or not the borrower is badly rated in other banks without fulfilling his / her obligations.

The system which was welcomed by most banks is being used intensively.

The creation of Risk Bureau as an independent department in the Central Bank in 1982, came in response to Article 104 of Union Law No. 10/1980 concerning the Central Bank, the Monetary System and Organization of Banking.